Forex News for 6th April, 2023

My FX List
April 6, 2023
  1. Cleveland Fed President Loretta Mester has stated that the Fed funds rate should go up “somewhat” to bring inflation to 2%, with the Fed funds rate exceeding 5% and the real Fed funds rate staying positive for a while.
  2. The U.S. crude oil stockpiles fell by 3.7 million barrels in the week ending March 31, exceeding the expected 2.3 million-barrel decline due to strong export and refining demand.
  3. RBA’s quarterly review acknowledged increased global stability risks and high-interest rates putting pressure on household budgets.
  4. Germany’s industrial production increased by 2.0% m/m in February, exceeding analysts’ expectations of a 0.1% increase.
  5. Canada’s trade surplus in February decreased sharply from 1.20B CAD in January to 422M CAD as both imports (-1.3%) and exports (-2.4% m/m) declined. The initial reading of January’s surplus was also revised significantly downward to 1.92B CAD.
  6. The U.S. goods and services trade deficit widened in February from $68.7B to $70.5B, the largest in four months, due to a larger decrease in exports (-2.7%) than imports (-1.5%).
  7. Switzerland’s unemployment rate decreased from 2.1% to 2.0% in March, the lowest reading since November.
  8. According to a recent survey by ISM, the U.S. services sector performed worse than expected in March, with a reading of 51.2, down from February’s 55.1, and lower than the predicted 54.3. Service providers’ prices paid also dropped to their lowest in three years, which supports the Fed’s anti-inflation efforts.
  9. The ADP report indicated a slowdown in private sector hiring in March, suggesting a deceleration in the economy. Payrolls increased by only 145K, compared to February’s 261K and the projected 210K.
  10. Despite a lack of direct catalysts, there was an increase in demand for GBP at the start of European session trading. Attention is likely to focus on high and low-tier releases from the U.S. that could highlight recession risks in the U.S. and the rest of the world.
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